Oil Rises to 27-Month High on Bets Economy Will Boost Demand

Oil rose to its highest price in 27 months on speculation the U.S. will sustain an economic recovery into this year, bolstering consumption in the world’s largest crude user.

Futures gained as much as 0.9 percent before today’s publication of the Institute for Supply Management’s factory index, which may show that manufacturing in the U.S. grew at the fastest pace in seven months in December. Fuel demand in the country climbed to the highest since May 2008 in the week ended Dec. 24, Energy Department figures published last week showed.